Purchase of IMF bonds not disrupt RI`s forex reserves

Kamis, 12 Juli 2012 20:47 WIB | 8.785 Views

Bank Indonesia Governor Darmin Nasution (ANTARA)

Jakarta (ANTARA News) - Bank Indonesia Governor Darmin Nasution gave the assurance on Thursday that the purchase of IMF bonds will not disrupt the country`s foreign exchange reserves at the central bank.

"Our foreign exchange reserves are also made up of various securities," he said.

The country`s foreign exchange reserves which reached US$106.5 billion until June 2012 would not decline even though US$1 billion of the amount had been used to buy the bonds, he said.

The bonds would remain at Bank Indonesia, he said.

"The US$1 billion bonds are part of our foreign exchange reserves. It is the central bank and not the government which manages the bonds," he said.

He said great part of the foreign exchange reserves was put in securities such as US, Australian, British, Canadian and German bonds.

"By buying the bonds we can help (the IMF). The amount of the foreign exchange reserves will not decline," he said.

The purchase of the IMF bonds was based on the agreement reached at a meeting of IMF members. The agreement was later discussed with the Indonesian finance ministry and the central bank, he said.

"Actually, the discussion took place a long time ago," he said.

He said the purchase of the IMF bonds still had to pass through a long process. Moreover, the IMF would not use funds from the sales of the bonds immediately.

"The funds will be used only if the IMF reserves reach below US$100 billion, while the IMF reserves currently reach more than US$400 billion," he said. (*)